Australia:Uncertainty continues at bowser

<a href=cowra.yourguide.com.au>Please Read Wednesday, 26 March 2003 Local petrol station operators are crossing their fingers that this week's drop in crude oil prices will filter through in the next two weeks. Cowra BP manager Matthew Porter said "he would very much like to see it happen" but could not promise that prices would fall under the magic $1 a litre mark. After rising more than 45 per cent since November, the price of oil eased to $US 33.80 a barrel earlier this week - after spending months in the high thirties. High seasonal demand in the United States and fewer imports from Venezuela, whose oil industry was crippled for months by a nationwide strike, had affected world supplies. The price fall this week appears to be based on hopes that the war between the United States and Iraq will have a limited and beneficial effect on the world's oil supply. However, prices are still volatile, with the biggest fear in the market that oil facilities in Middle Eastern countries such as Kuwait or Saudi Arabia, could be attacked. "As long as such as a price fall is sustained, it could see prices fall for us," Mr Porter said about the trickle down to local levels. Prices at BP Cowra are 108.9 cents per litre for unleaded, 111.9 cents per litre lead replacement, premium, 112.9 cents per litre and diesel 108.9 cents. Mr Porter said price drops do take time to filter through - between ten days to two weeks. Farmers in particular, he said, have been caught by the high prices. Good falls of rain have brought the need to start working the ground, requiring high amounts of fuel for farm machinery and equipment needs. He doesn't like paying the prices either. "I don't like it one little bit - we are backed into a corner," he said. He explained that prices at the bowsers are directly linked to what suppliers pay and that Cowra, despite the extra distance is extremely competitive, with prices comparable to regional centres such as Bathurst and Orange.